Third Quarter Sales Volumes Increase 22.1% PIRAEUS, Greece, Nov. 11
/PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc.
(NYSE:ANW) today announced financial and operating results for the
third quarter ended September 30, 2009. Third Quarter and
Year-to-Date Highlights -- Increased sales volumes by 22.1% to
1,635,473 metric tons in Q3 2009, compared to 1,338,914 metric tons
for Q3 2008. -- Expanded net revenues to $52.2 million. -- Recorded
operating income of $17.2 million. -- Reported net income of $14.1
million, or $0.33 basic and diluted earnings per share. -- Secured
a new $50 million credit facility, increasing total access to $340
million in senior secured revolving credit facilities. -- Continued
expanding global presence and infrastructure: -- Initiated
operations in Tangiers, Morocco. -- Received delivery of 2 newbuild
double-hull bunkering tankers during the quarter. The Company
recorded net income of $14.1 million, or $0.33 basic and diluted
earnings per share, for the three months ended September 30, 2009.
For purposes of comparison, the Company reported net income of $9.5
million, or $0.22 basic and diluted earnings per share for the
three months ended September 30, 2008. The weighted average basic
and diluted shares outstanding for the three months ended September
30, 2009 were 42,588,483 and 42,835,526, respectively. The weighted
average basic and diluted shares outstanding for the three months
ended September 30, 2008 were 42,505,507 and 42,640,765,
respectively. Total revenues for the three months ended September
30, 2009, decreased by 22.6% to $736.1 million compared to $950.6
million for the same period in 2008. For the three months ended
September 30, 2009, sales of marine petroleum products decreased by
22.9% to $731.8 million compared to $948.6 million for the
year-earlier period. Net revenue, which equals total revenue less
cost of goods sold and cargo transportation expenses, increased
12.5% to $52.2 million in the third quarter of 2009 compared to
$46.4 million in the year-earlier period. Results for the third
quarter of 2009 were primarily driven by a 7.9% increase in the
gross spread on marine petroleum products to $47.9 million compared
to $44.4 million for the same period in 2008. For the three months
ended September 30, 2009, the volume of marine fuel sold increased
by 22.1% to 1,635,473 metric tons compared to 1,338,914 metric tons
in the year-earlier period, as sales volumes improved in Greece,
Gibraltar, the U.A.E., and Singapore. Furthermore, results for the
third quarter of 2009 included increased sales volumes from
Aegean's newer markets. During the three months ended September 30,
2009, the gross spread per metric ton of marine fuel sold decreased
to $28.9 per metric ton, compared to $32.8 per metric ton in the
year-earlier period. Operating income for the third quarter of 2009
was $17.2 million, compared to $15.1 million for the same period in
2008. Operating expenses, excluding the cost of fuel and cargo
transportation costs (both of which are included in the calculation
of gross spread on marine petroleum products explained above),
increased to $35.0 million for the three months ended September 30,
2009 compared to $31.3 million for the same period in 2008. This
increase was principally due to the expanded logistics
infrastructure during the third quarter of 2009 compared to the
third quarter of 2008. E. Nikolas Tavlarios, President, commented,
"During the third quarter, we continued to take advantage of our
strong capital position and strengthen our leading industry brand,
enabling Aegean to once again post solid results for shareholders.
Highlighting our success, we increased sales volumes by 22.1% for
the three months ended September 30, 2009 compared to the
year-earlier period. While actively managing counterparty risk
during a challenging economic environment, we further expanded our
industry leadership in the quarter. Specifically, we commenced
operations in Tangiers, Morocco, the third new market launched by
Aegean in 2009 and ninth since going public in December 2006. In
addition to increasing our global scale, we expanded our
high-quality logistics infrastructure with the delivery of nine
double-hull bunkering vessels to date in 2009, including two
newbuildings in the third quarter. Consistent with our goal to
capitalize on the strong demand for modern tonnage, we plan to take
delivery of 17 remaining newbuildings by the end of next year. With
a growing infrastructure for the worldwide delivery of marine fuel,
we expect to continue to increase Aegean's global market share and
drive future sales volumes." For the nine months ended September
30, 2009, the Company recorded net income of $34.8 million, or
$0.82 basic and diluted earnings per share, compared to net income
of $26.8 million, or $0.63 basic and diluted earnings per share,
for the year-earlier period. The weighted average basic and diluted
shares outstanding for the nine month period ended September 30,
2009 were 42,573,082 and 42,601,423, respectively. The weighted
average basic and diluted shares outstanding for the nine months
ended September 30, 2008 were 42,490,780 and 42,643,124,
respectively. Total revenues for the nine months ended September
30, 2009 decreased by 26.1% to $1,644.1 million compared to
$2,223.6 million for the same period a year ago. For the nine
months ended September 30, 2009, sales of marine petroleum products
decreased by 26.5% to $1,631.0 million compared to $2,217.6 million
for the same period in 2008. Net revenues for the nine months ended
September 30, 2009 were $139.4 million as compared to $121.4
million in the year-earlier period. Results for the nine months
ended September 30, 2009 were led by an 9.5% increase in the gross
spread on marine petroleum products to $126.3 million compared to
$115.3 million for the same period a year ago. For the nine months
ended September 30, 2009, the volume of marine fuel sold increased
22.4% to 4,444,447 metric tons compared to 3,631,486 metric tons in
the year-earlier period. During the nine months ended September 30,
2009, the gross spread per metric ton of marine fuel sold decreased
by $3.5 to $28.0 per metric ton, compared to $31.5 per metric ton
for the same period a year ago. Operating income for the nine
months ended September 30, 2009 was $43.1 million compared to $36.0
million for the same period in 2008. Liquidity and Capital
Resources As of September 30, 2009, the Company had cash and cash
equivalents of $50.3 million and working capital of $198.5 million.
Non-cash working capital, or working capital excluding cash and
debt, was $213.4 million as of September 30, 2009. Net cash
provided by operating activities was $9.6 million for the three
months ended September 30, 2009. Net income, as adjusted for
non-cash items, was $21.3 million for the period. Net cash used in
investing activities was $20.5 million for the three months ended
September 30, 2009, and was composed of payments relating to
advances for both vessels under construction and second-hand
acquisitions. Net cash provided by financing activities was $34.0
million for the three months ended September 30, 2009, driven by
both an increase in short-term borrowings and an increase in
long-term debt financing relating to newbuild vessels. As of
September 30, 2009, the Company had approximately $85.8 million in
available liquidity to finance working capital requirements, which
includes unrestricted cash and cash equivalents and available
undrawn amounts under the Company's short-term working capital
facilities. Furthermore, as of September 30, 2009, the Company had
funds of approximately $70.4 million available under its secured
term loans to finance the construction of its new double-hull
bunkering tankers. Spyros Gianniotis, Chief Financial Officer,
stated, " Aegean's financial results for the third quarter reflect
sales volume growth in core markets located in Greece, Gibraltar,
the UAE and Singapore as well as contributions from new markets.
Our notable performance demonstrates management's ability to
increase sales volumes while maintaining a prudent approach in
extending credit to customers. During the quarter, we also secured
a new $50 million credit facility under attractive terms, once
again enhancing our leading competitive position. Our significant
financial liquidity, including credit facilities totalling $320
million and $50.3 million in cash, bodes well for Aegean to further
expand its long-term earnings potential as we continue to execute
our growth strategy." Summary Consolidated Financial and Other Data
(Unaudited) For the For the Three Months Ended Nine Months Ended
September 30, September 30, -------------------
-------------------- 2008 2009 2008 2009 --------- ---------
--------- --------- (in thousands of U.S. dollars, unless otherwise
stated) Income Statement Data: Sales of marine petroleum products
$948,569 $731,802 $2,217,570 $1,630,968 Voyage and other revenues
2,007 4,276 6,054 13,095 --------- --------- --------- ---------
Total revenues 950,576 736,078 2,223,624 1,644,063 Cost of marine
petroleum products sold 900,388 682,465 2,092,669 1,501,179
Salaries, wages and related costs 10,594 11,848 29,384 34,341
Depreciation and amortization 4,366 5,503 11,858 15,580 Gain on
sale of vessel - - (4,185) All other operating expenses 20,171
19,085 53,736 54,055 --------- --------- --------- ---------
Operating income 15,057 17,177 35,977 43,093 Net financing cost
3,090 2,737 7,919 7,195 FX losses (gains), net 1,629 123 325 339
Income taxes 883 210 890 733 ========= ========= =========
========= Net income $9,455 $14,107 $26,843 $34,826 =========
========= ========= ========= Basic earnings per share (U.S.
dollars) $0.22 $0.33 $0.63 $0.82 Diluted earnings per share (U.S.
dollars) $0.22 $0.33 $0.63 $0.82 Other Financial Data: Gross spread
on marine petroleum products(1) $44,377 $47,910 $115,332 $126,319
Gross spread on lubricants(1) 527 670 964 1,985 Gross spread on
marine fuel(1) 43,850 47,240 114,368 124,334 Gross spread per
metric ton of marine fuel sold (U.S. dollars) (1) 32.8 28.9 31.5
28.0 Net cash provided by (used in) operating activities 27,403
9,563 48,892 (70,214) Net cash used in investing activities 56,866
20,538 108,973 55,749 Net cash provided by financing activities
$43,517 $33,996 $88,224 $129,373 Sales Volume Data (Metric Tons):
(2) --------- --------- --------- --------- Total sales volumes
1,338,914 1,635,473 3,631,486 4,444,447 --------- ---------
--------- --------- Other Operating Data: Number of bunkering
tankers, end of period(3) 26.0 35.0 26.0 35.0 Average number of
bunkering tankers(3)(4) 26.5 34.5 22.4 32.4 Special Purpose
Vessels, end of period number(5) 1.0 1.0 1.0 1.0 Number of owned
storage facilities, end of period(6) 3.0 4.0 3.0 4.0 Summary
Consolidated Financial and Other Data (Unaudited) As of As of
December 31, 2008 September 30, 2009 -----------------
------------------ (in thousands of U.S. dollars, unless otherwise
stated) Balance Sheet Data: Cash and cash equivalents 46,927 50,337
Gross trade receivables 132,589 279,540 Allowance for doubtful
accounts (1,323) (1,641) Inventories 55,330 105,785 Current assets
251,387 461,458 Total assets 641,907 908,476 Trade payables 90,279
181,189 Current liabilities (including current portion of long-term
debt) 202,022 262,921 Total debt 253,621 385,382 Total liabilities
356,904 587,593 Total stockholder's equity 285,003 320,883 Working
Capital Data: Working capital(7) 49,365 198,537 Working capital
excluding cash and debt(7) 100,158 213,440 1. Gross spread on
marine petroleum products represents the margin the Company
generates on sales of marine fuel and lubricants. Gross spread on
marine fuel represents the margin that the Company generates on
sales of various classifications of marine fuel oil ("MFO") or
marine gas oil ("MGO"). Gross spread on lubricants represents the
margin that the Company generates on sales of lubricants. The
Company calculates the above-mentioned gross spreads by subtracting
from the sales of the respective marine petroleum product the cost
of the respective marine petroleum product sold and cargo
transportation costs. For arrangements in which the Company
physically supplies the respective marine petroleum product using
its bunkering tankers, costs of the respective marine petroleum
products sold represents amounts paid by the Company for the
respective marine petroleum product sold in the relevant reporting
period. For arrangements in which the respective marine petroleum
product is purchased from the Company's related company, Aegean Oil
S.A., or Aegean Oil, cost of the respective marine petroleum
products sold represents the total amount paid by the Company to
the physical supplier for the respective marine petroleum product
and its delivery to the customer. For arrangements in which the
Company purchases cargos of marine fuel for its floating storage
facilities, transportation costs may be included in the purchase
price of marine fuels from the supplier or may be incurred
separately from a transportation provider. Gross spread per metric
ton of marine fuel sold represents the margin the Company generates
per metric ton of marine fuel sold. The Company calculates gross
spread per metric ton of marine fuel sold by dividing the gross
spread on marine fuel by the sales volume of marine fuel. Marine
fuel sales do not include sales of lubricants. The following table
reflects the calculation of gross spread per metric ton of marine
fuel sold for the periods presented: Summary Consolidated Financial
and Other Data (Unaudited) For the For the Three Months Ended Nine
Months Ended September 30, 2009 September 30, 2009
------------------- ---------------------- 2008 2009 2008 2009
--------- --------- --------- --------- (in thousands of U.S.
dollars, unless otherwise stated) Sales of marine petroleum
products 948,569 731,802 2,217,570 1,630,968 Less: Cost of marine
petroleum products sold (900,388) (682,465)(2,092,669) (1,501,179)
Less: Cargo transportation costs (3,804) (1,427) (9,569) (3,470)
--------- --------- --------- --------- Gross spread on marine
petroleum products 44,377 47,910 115,332 126,319 ---------
--------- --------- --------- Less: Gross spread on lubricants
(527) (670) (964) (1,985) --------- --------- --------- ---------
Gross spread on marine fuel 43,850 47,240 114,368 124,334 =========
========= ========= ========= Sales volume of marine fuel (metric
tons) 1,338,914 1,635,473 3,631,486 4,444,447 Gross spread per
metric ton of marine fuel sold (U.S. dollars) 32.8 28.9 31.5 28.0
--------- --------- --------- --------- The amount that the Company
has to pay for marine petroleum products to fulfill a customer
order has been the primary variable in determining the prices
quoted to customers. Therefore, the Company evaluates gross spread
per metric ton of marine fuel sold in pricing individual
transactions and in long-term strategic pricing decisions. The
Company actively monitors its pricing and sourcing strategies in
order to optimize its gross spread on marine petroleum products.
The Company believes that this measure is important to investors
because it is an effective intermediate performance measure of the
strength of the Company's operations. Gross spread on marine
petroleum products, including gross spread on marine fuel and gross
spread on lubricants, and gross spread per metric ton of marine
fuel sold should not be considered as alternatives to operating
income, net income or other GAAP measures and may not be comparable
to similarly titled measures of other companies. These measures do
not reflect certain direct or indirect costs of delivering marine
petroleum products to the Company's customers (such as crew
salaries, vessel depreciation, storage costs, other vessel
operating expenses or overhead costs) or other costs of doing
business. For all periods presented, the Company purchased marine
petroleum products in Greece from its related company, Aegean Oil,
which is a physical supplier in Greece. The cost of these marine
petroleum products was contractually calculated based on Aegean
Oil's actual cost of these products plus a margin. 2. Sales volume
of marine fuel is the volume of sales of various classifications of
MFO and MGO for the relevant period and is denominated in metric
tons. The Company does not use the sales volume of lubricants as an
indicator. The Company's markets include its physical supply
operations in the United Arab Emirates, Gibraltar, Jamaica,
Singapore, Northern Europe, Ghana, Vancouver, Portland (U.K.),
Trinidad and Tobago (Southern Caribbean), Tangiers (Morocco), and
Greece, where the Company conducts operations through its related
company, Aegean Oil. 3. Bunkering fleet comprises both bunkering
vessels and barges. 4. Figure represents average bunkering fleet
number for the relevant period, as measured by the sum of the
number of days each bunkering tanker or barge was used as part of
the fleet during the period divided by the cumulative number of
calendar days in the period multiplied by the number of bunkering
tankers at the end of the period. This figure does not take into
account non-operating days due to either scheduled or unscheduled
maintenance. 5. Special Purpose Vessels consists of the Orion, a
550 dwt tanker which is based in our Greek market. 6. The Company
operates two Panamax tankers, the Ouranos and the Fos, one Aframax
tanker, the Leader, and one general purpose tanker, the Aegean IX,
as floating storage facilities in the United Arab Emirates, Ghana,
Gibraltar, and Jamaica, respectively. The ownership of floating
storage facilities allows the Company to mitigate its risk of
supply shortages. Generally, storage costs are included in the
price of refined marine fuel quoted by local suppliers. The Company
expects that the ownership of floating storage facilities will
allow it to convert the variable costs of this storage fee mark-up
per metric ton quoted by suppliers into fixed costs of operating
its owned storage facilities, thus enabling the Company to spread
larger sales volumes over a fixed cost base and to decrease its
refined fuel costs. 7. Working capital is defined as current assets
minus current liabilities. Working capital excluding cash and debt
is defined as current assets minus cash and cash equivalents minus
restricted cash minus current liabilities plus short-term
borrowings plus current portion of long-term debt. Third Quarter
2009 Dividend Announcement On November 11, 2009, the Company's
Board of Directors declared a third quarter 2009 dividend of $0.01
per share payable on December 3, 2009, to shareholders of record as
of November 12, 2009. The dividend amount was determined in
accordance with the Company's dividend policy of paying cash
dividends on a quarterly basis subject to factors including the
requirements of Marshall Islands law, future earnings, capital
requirements, financial condition, future prospects and such other
factors as are determined by the Company's Board of Directors. The
Company anticipates retaining most of its future earnings, if any,
for use in operations and business expansion. Conference Call and
Webcast Information Aegean Marine Petroleum Network Inc. will
conduct a conference call and simultaneous Internet webcast at 8:30
a.m. ET on Thursday, November 12, 2009, to discuss its third
quarter results. Investors may access the webcast and related slide
presentation, by visiting the Company's website at
http://www.ampni.com/, and clicking on the webcast link. The
conference call also may be accessed via telephone by dialing (888)
218-8170 (for U.S.-based callers) or (913) 312-1415 (for
international callers) and enter the passcode: 2936470. A replay of
the webcast will be available soon after the completion of the call
and will be accessible on http://www.ampni.com/. A telephone replay
will be available through Thursday, November 26, 2009, by dialing
888-203-1112 (for U.S.-based callers) or 719-457-0820 (for
international callers) and enter the passcode: 2936470. About
Aegean Marine Petroleum Network Inc. Aegean Marine Petroleum
Network Inc. is an international marine fuel logistics company that
markets and physically supplies refined marine fuel and lubricants
to ships in port and at sea. The Company procures product from
various sources (such as refineries, oil producers, and traders)
and resells it to a diverse group of customers across all major
commercial shipping sectors and leading cruise lines. Currently,
Aegean has a global presence in 14 markets, including Vancouver,
Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa,
Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab
Emirates, Singapore and Tangiers, Morocco. Cautionary Statement
Regarding Forward-Looking Statements Matters discussed in this
press release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "intend," "anticipate," "estimate," "project,"
"forecast," "plan," "potential," "may," "should," "expect" and
similar expressions identify forward-looking statements. The
forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections. In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include our ability to manage growth, our ability to
maintain our business in light of our proposed business and
location expansion, our ability to obtain double hull secondhand
bunkering tankers, the outcome of legal, tax or regulatory
proceedings to which we may become a party, adverse conditions in
the shipping or the marine fuel supply industries, our ability to
retain our key suppliers and key customers, material disruptions in
the availability or supply of crude oil or refined petroleum
products, changes in the market price of petroleum, including the
volatility of spot pricing, increased levels of competition,
compliance or lack of compliance with various environmental and
other applicable laws and regulations, our ability to collect
accounts receivable, changes in the political, economic or
regulatory conditions in the markets in which we operate, and the
world in general, our failure to hedge certain financial risks
associated with our business, our ability to maintain our current
tax treatments and our failure to comply with restrictions in our
credit agreements and other factors. Please see our filings with
the Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties. A copy of
the Company's interim unaudited consolidated financial statements
along with this press release have been filed today with the U.S.
Securities and Exchange Commission on Form 6-K and are available on
the SEC's website, http://www.sec.gov/. DATASOURCE: Aegean Marine
Petroleum Network Inc. CONTACT: Aegean Marine Petroleum Network
Inc., +1-212-763-5665, ; or Investor Relations, Leon Berman,
Principal, The IGB Group, +1-212-477-8438 Web Site:
http://www.ampni.com/
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